The UK Department for Energy Security and Net Zero has confirmed its stance on oil and gas licensing in response to questioning from Rigzone.“We will not issue new licences to explore new fields,” a department spokesperson told Rigzone.“We will also not revoke existing oil and gas licences and will manage existing fields for the entirety of their lifespan,” the spokesperson added.”We are working with the North Sea Transition Authority (NSTA) to ensure a fair and balanced transition in the North Sea,” the spokesperson went on to state.
The UK Department for Energy Security and Net Zero comment was sent to Rigzone in response to a series of questions, in which Rigzone asked the department if it had banned new oil and gas exploration, if there will be a 34th offshore licensing round under a Labour government, and if all companies that had been offered licenses under the 33rd offshore licensing round would be able to proceed with these licenses.
Rigzone also highlighted to the department that, back in May, in a statement posted on the NSTA website referring to the latest tranche of licenses offered as part of its 33rd, and latest, licensing round, the NSTA noted that “further consideration is being given to a small number of remaining applications and a few more licenses may be offered at a later date”. Rigzone asked the Department for Energy Security and Net Zero if these licenses will still be offered.
The NSTA announced in a May 3 statement that it had offered a further 31 licenses in the latest phase of the 33rd oil and gas licensing round. “A total of 82 offers to 50 companies have now been made in the round which attracted 115 bids from 76 companies across 257 blocks and part-blocks,” the NSTA said in that statement.“The licenses offered in the round would be expected to add an estimated 600 million barrels of oil equivalent up to 2060, or 545 by 2050,” it added.
That statement highlighted that the first tranche offered 27 licenses in October last year and that the second phase offered 24 licenses back in January this year.“The number of awards in the current round are broadly similar to the most recent predecessors,” the NSTA said in the statement.“The 32nd Offshore Licensing Round offered 113 licenses over 260 blocks or part-blocks to 65 companies, the 31st Round, which focused on frontier areas, offered 37 areas over 141 blocks or part-blocks to 30 companies; and the 30th Round offered 123 licenses over 229 blocks or part-blocks to 61 companies,” the NSTA added.
In a release sent to Rigzone last week, industry body Offshore Energies UK (OEUK) said the King’s Speech must set out a path that supports the UK offshore energy industry.OEUK stated in the release that the UK offshore energy industry expects the new Labour government to deliver on its commitment to work in partnership with industry as details of its program for government are published in the King’s Speech.
OEUK warned in the release that its member companies are “deeply concerned about the impact of proposals for a further windfall tax and an end to new oil and gas licenses”. The organization noted that the details of these proposals, alongside improvement to the regulatory and fiscal environment, will be key to achieving the full potential for the UK to deliver a homegrown energy transition.
The King reads out the speech, written by the government, from the throne in the House of Lords, the UK Parliament site notes. The state opening of parliament and the King’s Speech will take place on Wednesday, July 17.Rigzone has asked the Labour Party and the UK Department for Energy Security and Net Zero for comment on OEUK’s release. At the time of writing, neither organization has responded to Rigzone with comment yet.
A UK General Election took place on July 4. With all 650 seats declared, Labour won 411 seats, the UK Parliament website showed, highlighting that this was up 209 on Labour’s total from the previous UK election in 2019.
Ed Miliband was appointed Secretary of State for Energy Security and Net Zero on July 5. The Secretary of State has overall responsibility for the Department for Energy Security and Net Zero, according to the government’s website. Claire Coutinho previously held this role from 2023 to 2024. Prior to that, Grant Shapps held the role in 2023.
Miliband recently outlined his priorities in a message to staff, which was posted on the UK government website.Oil and gas production supports over 200,000 jobs in the UK, of which around 84,000 are in Scotland, according to a key facts page on OEUK’s site. The page highlights that oil and gas will still provide 50 percent of the UK’s energy needs in the mid-2030s and notes that this is estimated to fall to 22 percent by 2050.
“The offshore industry could invest around GBP 450 billion [$583.2 billion] between now and 2040,” the page states.“This is needed to responsibly manage our oil and gas supplies, whilst expanding offshore wind capacity and kickstarting carbon storage and low carbon hydrogen production,” it adds.
OEUK represents over 400 organizations involved in energy production from the seas around the Britain’s coast, the organization’s site states. Its members include gas, oil, wind, hydrogen and carbon capture specialists and a significant supply chain supporting projects across the sector, it adds.
Source:https://www.rigzone.com